Friday 29 Mar 2024
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KUALA LUMPUR (Feb 5): The FBM KLCI snapped its three-day winning streak today after the 30-stock index closed down 6.27 points or 0.4% at 1,578.63, partly due to a slump in share prices of plantation firms and glove manufacturers.

Share prices of KLCI-linked rubber glove manufacturers Top Glove Corp Bhd, Hartalega Holdings Bhd and Supermax Corp Bhd closed lower on what analysts perceived as negative reaction to news on Covid-19 vaccination programmes being rolled out globally to curb the spread of the pandemic.

Meanwhile, share prices of KLCI-linked plantation firms Kuala Lumpur Kepong Bhd (KLK), IOI Corp Bhd and Sime Darby Plantation Bhd ended lower possibly on investors' anticipation that Malaysia’s next monthly palm oil report may show that end-Jan 2021 inventory had risen compared with the preceding month.

News on Covid-19 vaccination programmes do not bode well for rubber glove manufacturers due to expectation of lower demand for gloves when the spread of the pandemic is curbed.

Meanwhile, higher palm oil inventory does not augur well for crude palm oil prices.

MIDF Amanah Investment Bank Bhd head of research Imran Yassin Md Yusof told theedgemarkets.com today that the "absence of fresh catalysts at the local bourse, coupled with profit-taking on blue-chip stocks by investors, especially in glove stocks” had affected broader market performance.

Top Glove's share price closed down 10 sen or 1.49% to RM6.61, Hartalega fell 12 sen or 0.9% to RM13.24 while Supermax was down 12 sen or 1.77% at RM6.67.

Meanwhile, KLK's share price closed down 50 sen or 2.1% to RM23.30, IOI Corp dropped five sen or 1.17% to RM4.24 while Sime Darby Plantation declined six sen or 1.21% to RM4.91.

The KLCI today snapped its three-day winning streak since Tuesday (Feb 2) when the index closed up at 1,580.49. 

Plantation shares fell today ahead of the Malaysian Palm Oil Board’s scheduled Jan 2021 report on Wednesday (Feb 10).

It was reported today that Malaysia's palm oil inventories at the end of January likely ticked up for the first time in four months, as a deep plunge in exports offset output which tumbled to a near five-year low, a Reuters survey showed.

It was reported that stockpiles in the world's second-largest producer is seen rebounding 1.75% from the previous month to 1.29 million tonnes, according to a median estimate of 11 planters, traders and analysts polled by Reuters.

Across Bursa Malaysia today, 6.09 billion securities were traded for RM4.16 billion.

There were 549 gainers and 532 decliners.

The KLCI closed down 0.4% today after rising to its intraday high of 1,590.47 and falling to its intraday low of 1,574.69.

At 0.4%, KLCI's drop trailed the decline quantum in Bursa's Palm Oil Plantation index and Health Care gauge.

The Palm Oil Plantation index closed down 1.24% while the Health Care gauge, which includes rubber glove manufacturers, fell 0.9%.

Edited ByChong Jin Hun
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